Statement by New Jersey Institute for Social Justice: National study shows that New Jersey’s predatory lending law has effectively reduced
abusive lending in the state

A major study released on February 23 by a national research organization has shown that New
Jersey’s anti-predatory lending law, the New Jersey Homeownership Security Act (NJ HOSA),
has accomplished its key goals of reducing abusive lending and lowering the costs of subprime
mortgages. Notably, the report finds that the NJ law reduced problematic subprime loans by over
35%. The study further shows that NJ HOSA has achieved these results without reducing access
to non-abusive subprime mortgages in the state. In fact, following the law’s enactment, New
Jersey has had higher levels of responsible subprime lending than any other state in the study.

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A major study released on February 23 by a national research organization has shown that New
Jersey’s anti-predatory lending law, the New Jersey Homeownership Security Act (NJ HOSA),
has accomplished its key goals of reducing abusive lending and lowering the costs of subprime
mortgages. Notably, the report finds that the NJ law reduced problematic subprime loans by over
35%. The study further shows that NJ HOSA has achieved these results without reducing access
to non-abusive subprime mortgages in the state. In fact, following the law’s enactment, New
Jersey has had higher levels of responsible subprime lending than any other state in the study.